What is it?

Like a standard variable rate mortgage a tracker mortgage will generally be above the Bank of England base rate. However, unlike an SVR mortgage a tracker mortgage will reflect changes in the base rate exactly.

What does it offer?

If you have a tracker mortgage you are guaranteed to benefit fully from any falls in interest rates, in contrast to the SVR.

What should I be aware of?

You have no protection from rising interest rates. If rates rise sharply so will your mortgage payments.

Some trackers come with a collar or a minimum rate below which they will not fall. If interest rates fall significantly, you may not enjoy the full benefit.